Bangladesh hikes prices of all fertilisers by Tk 5 per kg

The government has raised the prices of urea, DAP, TSP, and MOP

The Bangladesh government has raised the prices of four types of fertilisers – urea, DAP, TSP, and MOP – by Tk 5 per kg.

The price hike was announced in two separate notices from the Ministry of Finance and the Ministry of Agriculture on Monday.

The price of fertiliser was revised in line with the ongoing global economic situation and the rise in fertiliser price on the international market to keep imports of fertiliser at a reasonable level and ensure their best use, the notices said.

The new fertiliser rates will take effect from Apr 10, they noted.

The revised price per kg of urea is Tk 25 at the dealer level and Tk 27 at the farmer level, DAP is Tk 19 at the dealer level and Tk 21 at the farmer level, TSP is Tk 25 at the dealer level and Tk 27 at the farmer level, and MOP is Tk 18 at the dealer level and Tk 20 at the farmer level.

The current price of urea fertiliser is Tk 48 per kg on the world market, while that of DAP is TK 70, TSP is Tk 50 and MOP is Tk 60, according to the Ministry of Agriculture. This means, even after the Tk 5 hike, the government is paying a subsidy of Tk 21 per kg of urea, Tk 49 for DAP, Tk 23 for TSP, and Tk 40 for MOP used by farmers.

The price of fertiliser on the world market has increased three or fourfold over the past three years. As a result, the government subsidy on fertiliser in the country has also nearly quadrupled.

In the 2020-21 fiscal year, the government spent Tk 74.2 billion on fertiliser. In 2022-23, it spent about Tk 460 billion.